Shell to Sell $3.8 Billion of UK North Sea Assets

Royal Dutch Shell said Tuesday it has agreed to sell a package of U.K. North Sea assets to Chrysaor for up to $3.8 billion and a Thai gas field for $900 million.

The North Sea assets consist of the company’s interest in Buzzard, Beryl, Bressay, Elgin-Franklin, J-Block, the Greater Armada cluster, Everest, Lomond and Erskine, and a 10% stake in Schiehallion. The assets represent production of about 115,000 barrels of oil per day in 2016.

Shell will retain a fixed liability of $1 billion for the $3.9 billion estimated decommissioning costs associated with the assets, while Chrysaor will assume the remaining liability.

Under the deal, the company will receive an initial consideration for the assets of $3 billion, up to $600 million between 2018 and 2021, and potential further payments of up to $180 million for future discoveries.